Economics Questions (MCQs) for Competitive Examinations
Economics Multiple Choice Questions (MCQs) for General Studies and GK preparation of SSC, NDA, CDS, UPSC, UPPSC and State PSC Examinations.
31. Which of the following is a fixed cost for a firm?
[A] Land
[B] Labour
[C] both a and b
[D] None
Show Answer
Correct Answer: A [Land]
Notes:
Fixed cost is the Expenditure on hiring/purchasing of fixed inputs which is land. Whereas labor is variable cost as the input is variable with time. The other costs available are Explicit and Implicit cost.
32. What is the extra cost imposed by the government which increase the price for a customer is known as?
[A] Subsidy
[B] Tax
[C] Inflation
[D] Fine
Show Answer
Correct Answer: B [Tax]
Notes:
Tax is the cost imposed by the government over goods and services in an economy to generate revenue for the government for its expenditure. This includes capital as well as revenue expenditure.
33. What is output per unit of input of labor known as?
[A] Labor Productivity
[B] Production ability
[C] Capacity
[D] None of the above
Show Answer
Correct Answer: A [Labor Productivity]
Notes:
Productivity, in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of GDP to hours worked.
34. Which among the following is not a part of factor of production?
[A] Land
[B] Labour
[C] Capital
[D] Wages
Show Answer
Correct Answer: D [Wages]
Notes:
The Factors of production are the inputs available to supply goods and services in an economy.
They are Land, Labour, Capital and Enterprise.
35. Which type of Economy is Indian Economy?
[A] Mixed
[B] Market
[C] Capitalist
[D] Socialist
Show Answer
Correct Answer: A [Mixed]
Notes:
Indian Economy is a mixed economy where both state and market play a key role in the management of economy. In India both the Public sector as well as the private sector coexist.
36. Which among the following is part of Macroeconomics?
[A] Investment of households
[B] Wages of a person
[C] How to produce good
[D] Aggregate economic activity
Show Answer
Correct Answer: D [Aggregate economic activity]
Notes:
Macroeconomics is a branch of economics that studies how an overall economy the market systems that operate on a large scale behaves. It deals with the performance, structure, behavior, and decision-making of an economy as a whole. Its features are Employment, national income, poverty etc.
37. Which of the following are correct for Real GDP?
[A] Current year production valued at current prices
[B] Current year production valued at base year
[C] Current year production valued at last year prices
[D] Current year production valued at forecasted prices
Show Answer
Correct Answer: B [Current year production valued at base year]
Notes:
Real GDP refers to current year production of goods and services valued at base year prices. Real GDP is corrected for inflation. The current base year for calculation for GDP is 2011-12.
38. What is the aggregate of the gross balances of primary income of all resident institutional units knows as?
[A] Gross domestic Product
[B] Gross national product
[C] Gross National income
[D] Net national product
Show Answer
Correct Answer: C [Gross National income]
Notes:
Gross National Income is the aggregate value of the gross balances of the primary income of all resident institutional units.
39. Which of the following are part of National income?
[A] Value of all goods and services produced in a financial year
[B] An reused good sold in that financial year
[C] Service rendered by housewife
[D] None of the above
Show Answer
Correct Answer: A [Value of all goods and services produced in a financial year]
Notes:
In the calculation of national income, the value of goods and services produced in a year is added. While the value of old sold goods and the services of the housewife is not added.
40. Which of the following are part of Gross National Product(GNP)?
[A] Imports
[B] Exports
[C] Money earned by resident abroad
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Gross National Product is the value of all finished goods and services owned by a country’s residents over a period of time.
GNP: GDP+ NR (Net receipts from abroad or inflows from abroad) – NP (Net payment outflow to foreign assets)
